Does the company need to pay tax on borrowings from shareholders? It needs to be handled in two ways: 1. The company with agreed interest needs to withhold individual income tax for shareholders. Individual income tax shall be paid on the "interest, dividend and bonus income" item of borrowing interest obtained by individuals, and the tax rate is 20%. Don't forget to withhold individual income tax while paying interest on corporate loans. 2. If an individual shareholder borrows money from an enterprise for free and does not obtain cash, physical goods, marketable securities or other forms of economic benefits, no individual income tax shall be levied. If an enterprise borrows money from shareholders, it should also pay attention to the restriction of 2:1 debt to capital ratio because it is related. According to the provisions of Article 46 of the Enterprise Income Tax Law, the interest expenses incurred when the ratio of creditor's rights investment to equity investment received by an enterprise from its related parties exceeds the specified standard shall not be deducted when calculating the taxable income amount. When calculating the taxable income, the interest expenses actually paid by the enterprise to the related parties shall not exceed the proportion specified below and the part calculated according to the relevant provisions of the tax law and its implementation regulations, and the excess part shall not be deducted in the current period and subsequent years. In addition to meeting the provisions of Article 2 of this Circular, the ratio of debt investment to equity investment of related parties actually paid by enterprises to related parties is: (1) financial enterprises, 5:1; （2） For other enterprises, 2:1.